CCGB(SZ:300138) Huaxin Securities·2024-04-18 11:31Investment Rating - The report maintains a "Buy" investment rating for the company [13][19]. Core Views - The company is strengthening its competitive advantage in the extraction business while solidifying its main product base. Despite a significant drop in commodity prices in 2024, the demand for cottonseed processing products remains strong. The company is expected to leverage its extraction technology and expand production capacity to establish a cost advantage over competitors. Although short-term performance may be affected by cyclical fluctuations, the long-term return on investment for the cottonseed business is still viewed positively [13][19]. Financial Summary - The company's revenue for 2023 was 6,872 million yuan, representing a 9.1% increase. The net profit attributable to shareholders was 480 million yuan, with a growth rate of 10.5%. The diluted earnings per share (EPS) for 2023 was 0.90 yuan, and the return on equity (ROE) was 13.6% [14][30]. - For the forecast period from 2024 to 2026, the expected EPS is 0.61 yuan, 0.99 yuan, and 1.32 yuan, respectively. The corresponding price-to-earnings (P/E) ratios are projected to be 16, 10, and 7 times [13][14]. - The company anticipates a revenue growth rate of 12.5% in 2024, followed by 11.2% in 2025 and 9.5% in 2026. However, the net profit is expected to decline by 31.9% in 2024 before rebounding with a growth of 61.5% in 2025 and 33.3% in 2026 [14][30].